Despite the growth of bitcoin why haven't it been legalized by many nations?

[icebar]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

Despite the many benefits of Bitcoin, there are many reasons why governments are still not able to rely on it. Since Bitcoin is decentralized, it certainly poses some challenges for governments to adopt it. Again, governments do not want any financial system to be outside their control. The government's greatest weakness is that it cannot control Bitcoin. They will print money as they wish. The government wants to control the entire banking system, but if Bitcoin is legalized, it will no longer be under control. No government wants to lose its own authority.

One fear that governments always have is that Bitcoin's volatility is very high and there is a high possibility of losing investment at any time. Governments think that by intermediating the banking business, if Bitcoin is legalized, there will be no need for intermediaries and people will lose their jobs.

Many governments, without realizing it, consider it a scam and try to scare the common people. But they forget or do not try to understand that Bitcoin and other coins are not the same. Certainly, governments do not try to legitimize Bitcoin for their own sake, but gradually many countries are allowing the use of Bitcoin, prioritizing the real benefits of Bitcoin.

[finaleshot2016]

Major reason is tax. The government is having a hard time to tax bitcoin that’s why they are having a hard time justifying the use of bitcoin in their country. Government and private institutions are finding ways but of course BTC was created for decentralization so we always find ways. Even here in my country, they just DNS block exchange platforms but yet, people are still finding ways to access it. The government are offering license to some locals, that’s one of their ways to tax the users.

[Renampun]

That’s right. Every country’s economy is somehow tied to their currency and that’s because the government has control over that control which automatically grants them control over the economy. And you’re right that no country would adopt Bitcoin as their primary currency due to lack of control, the best they can do is to adopt Bitcoin as a legal tender and means of exchange or make it their country’s reserve like most of the countries who are said to have adopted Bitcoin.

The government will prioritize the currency they own compared to bitcoin, that is clear, legalizing bitcoin as legal tender does not give them any benefits, on the contrary it actually threatens their monetary control with so many people who might use Bitcoin for their transactions, and makes it more difficult for the government to tax their transactions.

making bitcoin a reserve makes much more sense for the government. that way they can gain potential Bitcoin price growth without sacrificing control of their monetary system.

[ThemePen]

Major reason is tax. The government is having a hard time to tax bitcoin that’s why they are having a hard time justifying the use of bitcoin in their country. Government and private institutions are finding ways but of course BTC was created for decentralization so we always find ways. Even here in my country, they just DNS block exchange platforms but yet, people are still finding ways to access it. The government are offering license to some locals, that’s one of their ways to tax the users.

Yes battle between decentralized nature of Bitcoin and need of government to collect taxes is largest conflict in financial world at present time. This tension has risen to new level as new world rules known as CARF and DAC8 have only begun this month and require crypto websites in more than 50 countries to give all user data and transactions to tax offices.
As governments attempt to block websites or give licenses to users to monitor them, individuals continue to find ways of going around these walls through special internet settings, VPNs or direct trading P2P. This arms race is present since Bitcoin was designed to work without middleman, and thus, it is extremely difficult to have authorities as tax collectors. I think that in case governments provide reasonable tax rates other than high ones, more people may follow rules on their own. Until that time, users will tend to move to use of private tools and decentralized wallets that government can hardly watch.

[JamesBond1984]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

i think for the older generation bitcoin will always look like a “scam”, and to be fair, they’re not completely wrong. some people really do use it for shady stuff and money laundering. on top of that, it’s a headache for governments when it comes to taxes and regulation. honestly, the first reply under this post explained it perfectly that guy is 100% right.

[Fiasem20]

Most governments aren’t even concerned about bitcoin talk less of legalizing it due to it’s growth.Government are fond of manipulating the fiat currency which it wouldn’t be possible for them to do in the blockchain network that’s why they aren’t interested in it.While most governments are bitcoin friendly but still haven’t legalized it yet,because this new monetary policy cannot be controlled by them.Personally,I’m not interested in bitcoin being a legal tender,I just want a friendly environment for bitcoin from the government,after all bitcoin not being a legal tender in many nations haven’t affected its adoption negatively.

[YOSHIE]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

Actually there are many reasons why Bitcoin cannot be legal in many countries, I think these are common reasons that are known by many people in the media.
For example common reasons:

Bitcoin is not legal in many countries because it is considered a high risk to financial stability, fueling crimes such as money laundering and terrorism financing, and because of its unregulated nature and price volatility, making it difficult for governments to control the flow of funds and protect consumers,although in some countries such as Indonesia, Bitcoin is only prohibited as a means of payment but is permitted as an investment commodity.

So, I think the quote above can answer your question in its entirety.

[Stormisover]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

Accepting and legalizing bitcoin in countries is a gradual process and not something that can be done by force.and with rush, before bitcoin was created and made known by the world, countries has the various policies, rule and regulations which involves protocols by the citizens, based on this decisions cannot be taken any how those rules and laws must be obeyed and if wants to be changed will be done gradually, so I believe with time all these will be done and bitcoin will be accepted globally.

That is the point the gradual process is what it will actually take perhaps leadership or political position of a nation varies it could be that the one in position may not be Bitcoin friendly maybe when another person that will be Bitcoin friendly will assume position then Bitcoin can easily have it's place in that particular nation or country secondly it is not a must that every nation will legalized Bitcoin simply because it it's growth and adoption it is only those that knows it's value and potential benefits that can obliged it being legalized in their nation.

[Luzin]

Major reason is tax. The government is having a hard time to tax bitcoin that’s why they are having a hard time justifying the use of bitcoin in their country. Government and private institutions are finding ways but of course BTC was created for decentralization so we always find ways. Even here in my country, they just DNS block exchange platforms but yet, people are still finding ways to access it. The government are offering license to some locals, that’s one of their ways to tax the users.

It doesn't matter; the main thing is that the government finds it very difficult to control Bitcoin because of its decentralized system. This is very much contrary to the governance systems of countries around the world. They don't want to take a big risk. Tax issues? Even my country has managed them quite well. They receive a significant amount of tax from crypto transactions. The step they have taken is to regulate it. The government works with exchanges and collects taxes directly from each transaction.

[purple_sparkles]

I believe it’s not necessarily a bad thing that many countries have not yet legalized bitcoin, because so-called legalization is often just a loud label. In reality, it usually becomes another way to extract money from citizens. I also think there is another self-serving reason behind this, some officials may keep part of their illegally earned money in cryptocurrency as well, and creating laws that regulate this sphere could end up affecting them too. To avoid that, it may be more convenient to leave the issue untouched for now, especially since the majority of the population in such countries does not yet use bitcoin in everyday life.

[Rustam Meraj]

I believe it’s not necessarily a bad thing that many countries have not yet legalized bitcoin, because so-called legalization is often just a loud label. In reality, it usually becomes another way to extract money from citizens. I also think there is another self-serving reason behind this, some officials may keep part of their illegally earned money in cryptocurrency as well, and creating laws that regulate this sphere could end up affecting them too. To avoid that, it may be more convenient to leave the issue untouched for now, especially since the majority of the population in such countries does not yet use bitcoin in everyday life.

That is true in case when countries make Bitcoin legal, it is not always about control of money and taxing of people but about safety of people. Governments can steal part of all deals easily by making it legal and charging high fees and in other cases leaders have no desire in creating rules so that they can keep their own crypto riches secret and difficult to track. Lack of official laws is in most ways good thing to everyday man because there is less government spying and no automatic taxing of his savings.
Actually this unclear space is one that will push people to trade straight to each other and understand how to save their money without always depending on bank or app that is run by government and that usually brings in extra watching and costs.

[MainIbem]

It's because most of them can't control it like they do with their central banks and over print fiat for their own greed, which is why they come up with laws and policies that restricts their citizens from it. Anyways Bitcoin doesn't need too many governments to legalise it to be relevant, you can see that despite the policies they implement, Bitcoin is still thriving, which has forced some governments that are smart to embrace it to the advantage of their economy. Also, many corrupt leaders sees Bitcoin as a threat since it offers transparency, but regardless, the value of Bitcoin would keep attracting more individuals to embrace it, the only thing their government can do is to implement policies but for how long.

[DiMarxist]

What you have to know and understand is that, Many countries has their own laws and even priorities as sovereign states, so what one nation considers good may not be true with another nation this is what should be understood by all. Secondly not everyone will appreciate Bitcoin for what it is and invest in it this is the way that, the world is made one man food may be another man's poison. There are countries which are still against Bitcoin today simply due to the myopic view and understanding of the leadership which runs in such countries.

[Cyber_warrior]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

Do you think the government likes bitcoin? Most of them are not in support of bitcoin, they don’t just know what to do, they have tried to bring down bitcoin, but all their efforts do end up failing. Governments are not always in support of bitcoin, but the citizens are backing bitcoin fully that’s why the awareness keeps on spreading.

Since the government doesn’t have full control of bitcoin, that’s why they are just against it, and they know if they can give bitcoin full access, it’s really going to affect fiat currency, and fiat currency is the one which they have full control over.

Just because they don’t have full control over bitcoin, they are saying some crazy things just to spoil bitcoin reputation. They claim bitcoin is used for illegal activities, but we all know all those things they claimed bitcoin is used for have been in existence even before bitcoin was created.

[Nwada001]

Because a lot of established financial institutions see the power of bitcoin and they know that they can't really control it no matter so they used the influence that they have in their respective government to try and make sure that bitcoin would never get the recognition that it deserves. It's as simple as that OP, it's all about control and regulations behind bitcoin, and with the way that bitcoin works, there's no way that people in power are going to let something they can't control loose.

To add to this, Bitcoin seems like a threat to many, which is the reason why they try as much as they can to obstruct its usage among people, but that's not the right thing to do. Many have also, on the other hand, embraced it. Instead of fighting to stop its adoption, regulating its usage among your citizens is the best any government can do since they can't completely stop it.

[Wiwo]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

i think for the older generation bitcoin will always look like a “scam”, and to be fair, they’re not completely wrong. some people really do use it for shady stuff and money laundering. on top of that, it’s a headache for governments when it comes to taxes and regulation. honestly, the first reply under this post explained it perfectly that guy is 100% right.

Most older people tend to think that way about Bitcoin to be honest and most of them have been victim of one online scam or the other and that make them feels that whatever exist online without physical representation is automatically a scam so they will always view Bitcoin like that and the is little to nothing we can do about that sad reality for the older people.

That is why the vast majority of the youths are embracing Bitcoin/crypto and related online tech related realities, while the older generation have a kick back the new generation adopting Bitcoin.

On the sides of the government, regulations and control is the most reasons why most of them are skeptical about Bitcoin and it adoption.

[Supreme Donvic]

Not all nation will make Bitcoin a legal tender that's because they see Bitcoin as a currency that has come to fight their own currency and they also see Bitcoin as something that can be used for money laundry and if they should allow bitcoin to become a legal tender in their nation the money laundering will become more in the nation and that is why they refuse to make it a legal tender or legalize it in there nation.
There are a lot of reasons that is making some countries not to legalize Bitcoin and this is the few  I can think of right now.
I really don't see a country accepting bitcoin as a big deal whether a country accept Bitcoin or not bitcoin will keep growing.

[JiiBs]

Major reason is tax. The government is having a hard time to tax bitcoin that’s why they are having a hard time justifying the use of bitcoin in their country. Government and private institutions are finding ways but of course BTC was created for decentralization so we always find ways. Even here in my country, they just DNS block exchange platforms but yet, people are still finding ways to access it. The government are offering license to some locals, that’s one of their ways to tax the users.

Regularization I would say. Government has always been about what they can control, having all within its territories engulfed in a centralized system with them at the apex so, they could successfully pull strings and get certain responses from it. That way, they have a better chance at controlling the citizens they govern.

With Bitcoin, it’s an entirely different case, these is zero control and most of all, there isn’t a proper way for the government to tax it or benefit from it ultimately and so, they don’t want to through much trouble with it and would want to leave it’s citizens confused on what way to go about it.

[KingsDen]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?

You really need to understand these two things about Bitcoin;

• Satoshi nakamato did not create bitcoin for it to replace fiat and be used by different countries to transact instead of their local currency. Bitcoin was created just to have a clear alternative that is not centralized or controlled by a central entity. This being said, every country has the liberty to continue using their national Identity (fiat) and strengthen it.
• Do not forget that bitcoin itself has shifted from being a currency to being an investment asset. Instead of you to expect country to adopt Bitcoin as a legal tender or national currency, you should rather expect such country to buy bitcoin as a national asset or economic reserve just as United States of America did recently. So, the problem of bitcoin is not being legalized or not.

[batang_bitcoin]

I believe it’s not necessarily a bad thing that many countries have not yet legalized bitcoin, because so-called legalization is often just a loud label. In reality, it usually becomes another way to extract money from citizens. I also think there is another self-serving reason behind this, some officials may keep part of their illegally earned money in cryptocurrency as well, and creating laws that regulate this sphere could end up affecting them too. To avoid that, it may be more convenient to leave the issue untouched for now, especially since the majority of the population in such countries does not yet use bitcoin in everyday life.

That's the start of it when the government have acknowledged it, they'll make laws and those laws will be favor to the government and not for the people. It's not needed that they have to legalized it, for as long as they won't stop people and chase them, put into jail for having bitcoin. It is a setting that many likes to be in a country with no recognition of Bitcoin. Just allowing it and being neutral is already enough, no need for tax obligations and seizure of it because they don't like it. So, going in the middle of it is what should be enough for us to understand that a government is doing all right.